The Benefits of Explainer Videos for Startups

Over the last few years, web-based explainer videos have risen in popularity as a way to identify exactly what a company does in just a few short minutes. I spoke with Tony Tie, the founder of a new Toronto-based explainer video startup called THiNK Video to find out why the medium is so effective for startups.

According to Tie there are four key areas where explainer videos are helpful for small businesses: affordability, simplicity, measurability and high impact.


Tie, who used to work in advertising, says that a TV commercial for big automotive or CPG brands can cost up to $500,000 for an ad with high production value. However, web-based explainer videos are much more affordable for startups and SMEs. “The cost can range anywhere from $2,000 to $50,000, depending on the production value required,” says Tie.

Explainer videos also save the user time and effort from having to read a whole website to understand what a company does. “Users are very impatient. So, the simplicity of the medium, plus the entertainment factor that comes from an engaging animated video has made the demand for explainer videos take-off,” says Tie.


The boom in production and viewership of explainer videos has increased the amount of internet searches for products displayed in the videos. According to Tie, conversions for a product can increase by 50% when an engaging explainer video is placed on a company website. Some of THiNK Video’s clients have already seen significant increases in conversions at a very low cost per acquisition.

Tie’s team is working to differentiate from other explainer video production companies in Canada by focusing on a unique production style, including more graphic design elements versus hand-drawn animations. THiNK Video also has a good grasp on how to measure the success of your videos.

With a background in search engine marketing, Tie says his team can educate clients on how to properly test and measure the back-end analytics of their videos. “We can also teach them how to set-up Google Analytics funnels, do A/B testing and analyze the data,” says Tie. Here’s a look at some recent explainer videos created by THiNK Video.